A Study on Impact of Mergers and Acquisitions for Selected Companies in FMCG Sector

Abstract

This study investigates the impact of mergers and acquisitions (M&A) on the financial performance of selected companies within the FMCG sector in India, focusing on the period from 2018 to 2024. It aims to assess how M&A activities influence profitability and shareholder value using a set of key financial ratios: Current ratio, Quick ratio, Net profit ratio, Return on Net Worth and Gross Profit Margin. These metrics offer insights into the efficiency and profitability changes post-M&A. The study employs a quantitative research approach, utilizing financial data collected from company annual reports, stock market data, and M&A transaction databases. Findings from this study are expected to shed light on the effectiveness of M&A strategies in enhancing operational and financial outcomes for FMCG firms. The research also addresses limitations such as data availability, market volatility, and the short-term nature of performance assessment. Overall, this study contributes to understanding how M&A influences the FMCG sector, providing valuable insights for industry stakeholders, investors, and policymakers. It provides a detailed understanding of how mergers and acquisitions shape financial planning in the FMCG sector, equipping decision-makers with insights into best practices and critical considerations for future M&A endeavors.